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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1051340852350

Date of advice: 20 February 2018

Ruling

Subject: Residency

Question

Are you a resident of Australia for income tax purposes?

Answer

No

This ruling applies for the following periods:

Year ended 30 June 2016

Year ended 30 June 2017

Year ended 30 June 2018

Year ended 30 June 2019

The scheme commences on:

1 July 2015

Relevant facts and circumstances

You left Australia in the 2015/16 financial year. You had no intentions of permanently leaving Australia.

You returned briefly in the 2016/17 financial year.

You returned to Australia again in the 2016/17 financial year and stayed for less than six months.

Your intention to leave Australia permanently was formed in the 2016/17 financial year when you got married. You have supplied your marriage certificate.

You were renting when you lived in Australia.

You are currently a foreign resident.

Your bank verified your address outside of Australia.

You have supplied a 12 month lease agreement.

You have no dependants.

You do not have a return ticket to Australia.

You had no assets overseas when you departed Australia.

You have closed all of your Australian bank accounts as of the 2017/18 financial year.

You no longer own vehicles, property or household items within Australia.

You were the director of a business within Australia that is now in voluntary windup and 2018 tax returns have been submitted to show this.

You are not receiving income from Australian sources.

You have opened bank accounts and established businesses outside of Australia.

Relevant legislative provisions

Income Tax Assessment Act 1997 Subsection 995-1(1)

Income Tax Assessment Act 1936 Subsection 6(1)

Reasons for decision

Section 995-1 of the Income tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for tax purposes as a person who is a resident of Australia for the purposes of the Income Tax Assessment Act 1936 (ITAA 1936).

The terms ‘resident’ and ‘resident of Australia’, in regard to an individual, are defined in subsection 6(1) of the ITAA 1936. The definition provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. The tests are:

If any one of these tests is met, an individual will be a resident of Australia for taxation purposes.

Based on the facts you have provided, we can conclude that you will not satisfy any of the tests of residency.

Accordingly you are not a resident of Australia for income tax purposes from when you departed Australia under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936.

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